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Stock Market News for Jul 22, 2021

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U.S. stocks closed higher for the second successive day on Wednesday, as a string of upbeat earnings coupled with renewed optimism about the nation’s economic recovery gave a boost to investors’ confidence. All the three major indexes ended in positive territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) gained 0.8% or 286.01 points to close at 34,798 points to turn positive for the week after Monday’s massive decline.

Shares of Exxon Mobil Corporation (XOM - Free Report) gained 3.2%, while Chevron Corporation (CVX - Free Report) jumped 3.4%. Chevron carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The S&P 500 advanced 0.8% or 35.63 points to close at 4,358.69 points. The rally was led by energy and financial stocks.

The Energy Select Sector SPDR (XLE) jumped 3.5%, while the Financials Select Sector SPDR (XLF) gained 1.7%. Eight the 11 sectors of the benchmark index closed in positive territory.

The tech-heavy Nasdaq rose 0.9% or 133.08 points to finish at 14,631.95 points.

The fear-gauge CBOE Volatility Index (VIX) was down 9.22% to 17.91. A total of 9.13 billion shares were traded on Wednesday, lower than the last 20-session average of 10.17 billion. Advancers outnumbered decliners on the NYSE by a 2.92-to-1 ratio. On Nasdaq, a 3.21-to-1 ratio favored advancing issues.

Investors Show Faith in Economy

After Monday’s decline investors got back their confidence on Tuesday, while many continued to buy the dip. On Wednesday, the upbeat sentiment continued. On Wednesday, a string of big names reported robust earnings that further gave investors’ confidence a boost.

Shares of The Coca-Cola Company (KO - Free Report) and Johnson & Johnson (JNJ - Free Report) which reported impressive quarterly results saw their shares gaining 1.3% and 0.7%, respectively.

The 10-year Treasury yield is also playing key role in driving the markets. After hitting a five-month low on Monday, the 10-year Treasury yield stabilized on Tuesday that led to the rally. On Wednesday, the 10-year Treasury yield rose slightly by 8 basis points to 1.29%.

However, the trend is still down despite bonds moving higher. The 10-year Treasury yield is still a lot lower compared to five months ago when it had reached 1.7%.

On Wednesday, stocks that would benefit from the economic recovery went on a rally for the second day after suffering massive loss on Monday. Shares of Carnival Corporation & plc (CCL - Free Report) soared 9.4%, while Las Vegas Sands Corp. (LVS - Free Report) gained 3.4%.

No major economic data was released on Wednesday.